Giant.... dispensation...ahem.

**Tingles** · 2 April 2008, 13:41

Email received from GIANT.....

Hi T,

Following our conversation earlier regarding your expenses. You would be able to claim for the set amount of £90 for your Bed & Breakfast claims, even if the cost you incurred is less then the set amount. The difference between the actual amounts you paid and the amount claimed is covered by the dispensation we have with HMRC.

I hope this information helps, if you do have any further questions or concerns, please do not hesitate to contact me.

Regards

**Captain Jack** · 2 April 2008, 13:41

Have a look in the accounting forum under 'dispensation'. A mine of information in there but in a nutshell, no.

You should also forward the email encouraging you to claim for money you haven't spent to HMRC. Every little helps.

**TheFaQQer** · 2 April 2008, 13:41

Originally posted by Tingles View Post

An interesting conversation with GIANT…..

I put in some receipts for B&B and claimed the amount I spent…..

They say they have a dispensation for £XX pounds per night for room and a standard amount for meals = £XXX

And even though I’ve only spent less than a third of the amount, I can claim the standard figure because of their ‘dispensation’???

I asked her to repeat it and then asked her to email me with this info.

Does HMRC actually let me claim for amounts I haven’t paid for???
I asked for them to send an email explaining this…..

Comments?

T

No, they don't. If you don't spend the money, you can't claim it - if you do, it's tax fraud.

I'd be astounded if you get anything in writing from Giant that confirms this - they have defended their use of the dispensation before, and particularly since the budget said that HMRC will be clamping down on it, I'd be surprised.

If they do put it in writing, just send it over to HMRC and get them to confirm it, and you'll be in the clear

**TheFaQQer** · 2 April 2008, 13:43

Originally posted by Tingles View Post

Email received from GIANT.....

Hi T,

Following our conversation earlier regarding your expenses. You would be able to claim for the set amount of £90 for your Bed & Breakfast claims, even if the cost you incurred is less then the set amount. The difference between the actual amounts you paid and the amount claimed is covered by the dispensation we have with HMRC.

I hope this information helps, if you do have any further questions or concerns, please do not hesitate to contact me.

Regards

You should forward that to HMRC - they are encouraging you to commit tax fraud, and if HMRC come calling, it's your

on the line, not theirs.

I would expect that the PCG would be interested in getting a copy of something like that as well.

**PerlOfWisdom** · 2 April 2008, 13:47

Originally posted by Tingles View Post

Email received from GIANT.....

Hi T,

Following our conversation earlier regarding your expenses. You would be able to claim for the set amount of £90 for your Bed & Breakfast claims, even if the cost you incurred is less then the set amount. The difference between the actual amounts you paid and the amount claimed is covered by the dispensation we have with HMRC.

I hope this information helps, if you do have any further questions or concerns, please do not hesitate to contact me.

Regards

It says you can claim (from the umbrella company) the £90. It doesn't say you don't have to pay tax on it.

**TheFaQQer** · 2 April 2008, 13:49

Originally posted by PerlOfWisdom View Post

It says you can claim (from the umbrella company) the £90. It doesn't say you don't have to pay tax on it.

Ah - good spot. I guess the next clarification from Giant is that they will declare this on the P11D for their employees, since it's a benefit in kind.

Expected answer - "you won't need a P11D, as we have a dispensation". So, where do you declare the BIK?

**chef** · 2 April 2008, 13:49

Originally posted by Tingles View Post

Email received from GIANT.....

Hi T,

Following our conversation earlier regarding your expenses. You would be able to claim for the set amount of £90 for your Bed & Breakfast claims, even if the cost you incurred is less then the set amount. The difference between the actual amounts you paid and the amount claimed is covered by the dispensation we have with HMRC.

I hope this information helps, if you do have any further questions or concerns, please do not hesitate to contact me.

Regards

oh my oh my, how i'd love to be a fly on the wall when hector views that email

**NotAllThere** · 2 April 2008, 13:55

Originally posted by TheFaQQer View Post

Ah - good spot. I guess the next clarification from Giant is that they will declare this on the P11D for their employees, since it's a benefit in kind.

Expected answer - "you won't need a P11D, as we have a dispensation". So, where do you declare the BIK?

That's why GIANT have the dispensation - it saves them admin. They don't need to look at employees claims, just pay the £90 (or whatever) to them all. It's up to the individual employee to report the difference in the amount spent and the amount reimbursed, to HMRC. And to not do so is to commit tax fraud.

**LisaContractorUmbrella** · 2 April 2008, 14:00

I would like to think that the Giant employee in this case is maybe a little confused about what is allowable and what isn't as tax would obviously be payable on the difference between the amount spent and the amount claimed - it could be a genuine mistake. Just to clarify - a dispensation means that the umbrella company does not have to record expenses on a P11D it doesn't mean that contractors don't need receipts and it also doesn't mean that they can claim for everything on the dispensation regardless of whether they have incurred the cost

HTH

Giant.... dispensation...ahem.